Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Not all profitable companies are created equal, and that’s why we built StockStory - to help you find the ones that truly shine bright. Keeping that in mind, here are two profitable companies that generate reliable profits without sacrificing growth and one best left off your watchlist.
One Stock to Sell:
Dropbox (DBX)
Trailing 12-Month GAAP Operating Margin: 26.6%
Originally named after the founders' tendency to "drop" files into a shared folder, Dropbox (NASDAQ:DBX) provides a content collaboration platform that helps individuals and teams store, organize, share, and work on files from anywhere.
Why Is DBX Risky?
- Flat billings over the last year suggest it may need to improve its products, pricing, or go-to-market strategy to reinvigorate demand
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Efficiency rose over the last year as its Operating margin increased by 4.2 percentage points
Dropbox is trading at $35.85 per share, or 3x forward price-to-sales. Check out our free in-depth research report to learn more about why DBX doesn’t pass our bar.
Two Stocks to Buy:
RB Global (RBA)
Trailing 12-Month GAAP Operating Margin: 16%
Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE:RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.
Why Is RBA a Good Business?
- Impressive 27.4% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 19.3% annually
- Strong free cash flow margin of 14% enables it to reinvest or return capital consistently
RB Global’s stock price of $86.50 implies a valuation ratio of 18.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Ares (ARES)
Trailing 12-Month GAAP Operating Margin: 21.8%
With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE:ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.
What Makes ARES Stand Out?
- Market share has increased this cycle as its 24.3% annual revenue growth over the last two years was exceptional
- Earnings growth has easily exceeded the peer group average over the last five years as its EPS has compounded at 19.5% annually
At $149.46 per share, Ares trades at 22.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.